Which of the Following Statements Is TRUE

question 19

Multiple Choice

Which of the following statements is TRUE?

• A)Labor is always a variable input.
• B)Capital is always a fixed input.
• C)Materials are always variable inputs.
• D)None of the above.

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Definitions:

Long-Run Average Cost

The per-unit cost of production in the long term, where all inputs are variable.

Total Output

The total value of goods and services produced by an economy over a specific period of time.

Total-Cost Curve

A graphical representation showing the total cost of producing varying quantities of output.

Economic Profit

The surplus gained from undertaking an activity after accounting for both explicit and implicit costs, differing from accounting profit.